Last-Mile Site in San Jose Catches Prologis’ Eye
This 9.08-acre acquisition by Prologis, within 10 minutes of San Jose's airport, near downtown and with access to the South Bay's major freeways, makes it an ideal candidate to fill some of the last-mile demand.
SAN JOSE—A recently acquired site is a strategic core purchase for Prologis, in this market where land is scarce, and demand remains strong for in-fill development and associated last-mile delivery uses. The 9.08-acre land parcel is located north of downtown at 1055 Commercial Ct., and the terms of the transaction were not disclosed.
JLL logistics and supply chain specialists Mike Murray, Greg Matter and Jason Ovadia arranged the sale on behalf of Prologis. Matter says it is an exceptionally well-located site that is “perfectly positioned” for future in-fill and last-mile industrial development.
“The supply of modern last-mile industrial real estate continues to lag demand throughout the region, but particularly in the South Bay. This acquisition by Prologis, within 10 minutes of San Jose’s airport and with incredible access to all of the South Bay’s major freeways, makes it an ideal candidate to fill some of that demand,” Matter tells GlobeSt.com.
1055 Commercial Ct. is close to on/off ramps for the Bayshore (US Highway 101) Freeway and Interstates 680 and 880. The site is near Norman J. Mineta International Airport and downtown.
“Prologis’ scale enables us to be in the world’s most desirable urban in-fill locations and consumption centers, uniquely positioning us to respond to the growing demand for last-touch industrial warehouse space in densely populated regions like the Bay Area. This latest acquisition adds to our already large presence in the region, and offers long-term build-to-suit and redevelopment opportunities for customers’ evolving needs,” said Darren Kenney, vice president and investment officer, Prologis.
Although the market remains especially tight compared to neighboring markets and the national average, the increase in the sublease vacancy rate could hint at a tenant-favorable shift in the Silicon Valley in upcoming quarters. The sublease availability rate is at 0.9%, a 350% increase year-over-year. Operating with tight margins, contract manufacturers are some of the first to feel the brunt, according to JLL’s second quarter industrial report.